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Bitcoin ‘Extraordinarily Cheap’, Yardstick Inventor Says

Current figures show that Bitcoin's hash rate has hit record highs, with prices falling 75 percent since its last price spike in November last year.

The Bitcoin Yardstick, a metric coined by Charles Edwards, chief executive of asset management at Capriole, has hit near record lows following the 2017 bull market run.

He said in a recent tweet that the Bitcoin Yardstick was “a very simple, rule-of-thumb Bitcoin valuation tool”, but was “not investment advice.”

Edwards, whose measurement calculates the ratio of Bitcoin market capitalisation to hash rate, believes that Bitcoin is oversold more than most coins, indicating how cheap buyers can purchase BTC.

Current figures show that Bitcoin’s hash rate has hit record highs, with prices falling 75 percent since its last price spike in November last year.

Speaking further in his Twitter thread, he said the Yardstick method takes the “ratio of energy work done to secure the Bitcoin network in relation to price.”

He added: “Lower readings = cheaper Bitcoin = better value.”

Concluding, he stated: “This means that on a relative basis, Bitcoin is extraordinarily cheap given the amount of energy being used on what is the most powerful computer network in the world.”

Investors interested in following his Bitcoin Yardstick equation can visit Glassnode Studio for updates.

The Bitcoin Yardstick cits the proof-of-work (PoW) concept based on the mining algorithm for the cryptocurrency network’s storage and growth value over time, as evidenced by the Bitcoin Standard authored by Saifedean Ammous.

Sources also indicate the power required for the Bitcoin network is much less than the value of traded cryptocurrencies, with crypto miners and firms alleging of unfair valuation rates.

No information published in Crypto Intelligence News constitutes financial advice; crypto investments are high-risk and speculative in nature.